Competency, Entrepreneurial Leadership, Commitment and,… 66
Competency, Entrepreneurial Leadership, Commitment and Their Impact on Performance through Village Governance
Haris Fauzi1*, Atty Tri Juniarti2,Iman Sudirman3
1*Department of Management, Universitas Majalengka
2,3Department of Management, Universitas Pasundan, Bandung A R T I C L E I N F O
Email Correspondence:
Keywords:
Competence; Entrepreneurial
Leadership; Commitment; Performance
DOI:
https://doi.org/10.33096/jmb.v10i1.480
A B S T R A C T
This research utilizes descriptive analysis and confirmation methods. The data collection technique used is by distributing questionnaires. The population in this study were village chiefs in the CIAYUMAJAKUNING (Cirebon, Indramayu, Majalengka, and Kuningan) area, with a representative of 312 respondents. The sampling technique used is Cluster Proportionate Stratified Random Sampling. The scale of proportions in this study uses a Likert scale.
Testing of data instruments is carried out by testing the validity and reliability tests, while the data analysis is done by using the SEM analysis tool. The results of the research that has been done show competence, entrepreneurial-minded leadership, commitment in good criteria, and village governance and village head performance in good criteria. The study results partially show that competency, entrepreneurial leadership, and commitment have a significant effect on village governance, then village governance has a significant effect on village head performance. The results of the study simultaneously state that competency, entrepreneurial leadership, and commitment together have a significant effect on village governance.
A B S T R A K
Penelitian ini menggunakan metode analisis deskriptif dan verifikatif. Teknik pengumpulan data yang digunakan yaitu dengan menyebarkan kuesioner.
Populasi dalam penelitian ini adalah kepala desa di wilayah CIAYUMAJAKUNING (Cirebon, Indramayu, Majalengka, dan Kuningan), dengan sampel sebanyak 312 responden. Teknik pengambilan sampling yang digunakan adalah Cluster Proportionate Stratified Random Sampling. Skala pengukuran penelitian ini menggunkan skala likert. Pengujian instrumen data dilakukan dengan uji validitas dan uji reliabilitas, sedangkan analisis datanya adalah dengan menggunakan alat analisis SEM. Hasil penelitian yang telah dilakukan menunjukkan kompetensi, kepemimpinan yang berwawasan wirausaha, Komitmen dalam kriteria baik, dan tata kelola pemerintahan desa dan kinerja kepala desa dalam kriteria baik. Hasil penelitian secara parsial kompetensi, kepemimpinan yang berwawasan wirausaha dan komitmen berpengaruh signifikan terhadap tata kelola pemerintahan desa, kemudian tata kelola pemerintahan desa berpengaruh signifikan terhadap Kinerja kepala Desa. Hasil penelitian secara simultan menyatakan bahwa kompetensi, kepemimpinan yang berwawasan wirausaha dan komitmen secara bersama-sama berpengaruh signifikan terhadap tata kelola pemerintahan desa.
This work is licensed under a Creative Commons Attribution 4.0 International License.
INTRODUCTION
The conception of Law No. 6 of 2014, creating the Village no longer an object of development, but a subject of development. In addition, the Village also has the privileges and responsibilities to regulate its government system. Furthermore, Law Number 23 of 2014 concerning Regional Government has mandated that to improve people's welfare it is pursued through 3 (three) ways, including Improving public services, increasing community participation and empowerment, and increasing regional competitiveness, to carry out the mission The meaning of the village is that it has a strategic position and role as a government organizational unit that directly deals with the community.
Jurnal Manajemen Bisnis Vol. 10, No.1 (2023) March, Page. 66-76 e-ISSN: 2621-1971|p-ISSN: 2088-7086
Fauzi, et., al. 67
The Central Government provides an additional flow of funds to the Village beyond the Village Fund Allocation that the Village has received each year, namely the Village Fund.
Village Funds are funds originating from the State Revenue and Expenditure Budget earmarked for Villages which are transferred through the Regency/City Regional Revenue and Expenditure Budget, (Government Regulation Number 60 of 2014). The development of Village Funds launched by the Central Government with the following 74.0 villages in Indonesia:
Figure 1 Village Fund Development 2015-2020 (trillion rupiahs)
Source: Figure 1 Ministry of Villages, Development of Disadvantaged Regions, and Transmigration
With the allocation of Village funds following Law No. 6 of 2014 No. 78 Village development aims to improve the interest of Village communities and the quality of human life and reduce poverty through meeting basic needs, developing Village facilities and infrastructure, developing local economic potential, and sustainable use of natural resources and the environment. One of the ways to achieve these goals is through improving public services in the village and advancing the village economy through the development of BUMDES which is expected to be able to quickly move the economy for the benefit of the community so that poverty can be significantly reduced. The following is a table of poverty in Indonesia according to official statistical news No.16/ 02/yr. XXIV, 15 February 2021:
Table 1 Poverty Profile in Indonesia (in million people)
Month’s 2015 2016 2017 2018 2019 2020
March 28.59 28.01 27.77 25.95 25.14 26.42
September 28.51 27.77 26.58 25.67 24.79 27.55
Source Table 1 Badan Pusat Statistik (2021)
From the table above it can be seen that in 2015 the poverty rate reached 28.51 million people and in 2016 there was indeed a decrease in the poverty rate from 28.51 million people to 27.77 million, while in September 2020 it increased from March 2020, namely from 26.42 million people rose to 27.55 million's. This means that if you look at the table above, poverty in Indonesia fluctuates and even if there is a decrease, the decrease is not significant even though the budget allocated to villages continues to increase every year.
Competency, Entrepreneurial Leadership, Commitment and,… 68
So far, development in villages, especially in West Java, has not been going as expected or can be said to be not optimal, this can be seen from data from the West Java Village Community Empowerment Service (DPMD) regarding village status based on the status of the Developing Village Index as follows:
Table 2 Village Status Data in West Java According to the IDM Category (Developing Village Index)
No Status Number
1. Very Far Behind 0
2. Far Behind 121
3. Developed 3.920
4. Progressive 1.631
5. Independent 270
Source Table 2 DPMD (2021)
From the table above it can be seen that of a total of 5,312 villages in West Java, there are 270 villages in the independent village category, 1,631 villages in the developed category, while 3,920 villages are in the developing category, and 3,920 villages are in the developed village category. What is even more concerning is that in West Java there are still villages that fall under the category of underdeveloped villages, namely 121 villages spread across 18 regencies and cities in West Java.
The author will also display data in Cirebon, Indramayu Majalengka, and Kuningan districts (CIAYUMAJAKUNING) because these four districts are the districts that will be made as research objects, the reason for being the object of research is because these four districts have the highest poverty in West Java, so to more clearly the author will display poverty data in CIAYUMAJAKUNING in the following table:
Table 3 Percentage of Poor Population (Percent), 2018-2020, Ciayumajakuning (in %)
No Districts Number of
Villages
Percentage of Poor Population
2018 2019 2020
1. Kuningan 361 12,22 11,41 12,82
2. Indramayu 317 11,89 11,11 12,70
3. Majalengka 330 10,79 10,06 11,43
4. Cirebon 412 10,70 9,94 11,24
Source Table 3 BPS Jawa Barat (2020)
Considering the table above it is evident that poverty has increased, seen from the table above that Kuningan district ranks 1st for poverty in the CIAYUMAJAKUNING region, Indramayu district ranks 2nd and Majalengka district ranks 3rd, while Cirebon district ranks 4th The village head is one of the important factors in village administration, this is the reason for making the village head the object of research because the progress of a village depends on the village head. The Village Head must be able to manage the Village apparatus productively and he must be able to create a pleasant working atmosphere so that the Village apparatus can carry out their duties without pressure from the leadership but based on awareness of work demands.
Performance is "an effort to obtain superior conditions by carrying out reforms as a vehicle to bring innovation into the organization" PP Number 30 of 2019. The definition of government
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agency performance according to LAN RI (2003) is a description of the level of achievement of government agency goals or objectives as an elaboration of the vision, mission, and strategy of government agencies that indicate the level of success and failure of the implementation of activities following the established programs and policies. (Mangkunegara & Prabu, 2017) suggests that performance is the result of work in quality and quantity achieved by an employee in carrying out his duties following the responsibilities given to him.
Whether village governance is good or not is also an important factor in improving performance. Although no one has formally defined it, governance is considered important to ensure national welfare. UNDP (United Nations Development Programme) in (Sedarmayanti, 2010). According to (Aminudin, 2019), that good Village Governance is Realizing the concept of Good Governance requires interaction between the government and the community. By signifying the transformation of the type of relationship in which government runs to meet the needs of citizens.
UU no. 6 of 2014 states that the implementation of village government is based on the principles of legal certainty, transparency, accountability, effectiveness, efficiency, and participation. The government's awareness of accountability and the principles of Good Governance, the government has begun to realize good government performance towards Good Governance (Acintya & IGAMAD, 2015). With accountability, it is hoped that the government can improve its performance and can be trusted by the community (Onuorah & Appah, 2012).
In recognizing Village Governance, The competence factor becomes very useful to assist the Government in improving its performance. According to (Busro, 2018). "Competence is everything that is owned by a person in the form of knowledge, skills and other individual internal factors to be able to do a job based on the knowledge and skills they have." This opinion is reinforced by the statement (Mathis et al., 2017) explaining that "Competency is a basic characteristic that correlates with individual or team performance achievement." (competence is a basic characteristic that can be linked to improving the performance of individual employees and teams). This shows that competence concerns the basic ability of a person to do the job.
Several other factors are considered influential on village governance including entrepreneurial leadership. Leadership is a force that is used as capital to make changes toward success. Leaders must direct all of their human resources to realize the vision and mission of the organization. One of the important factors that influence the success of a leader is entrepreneurial-minded leadership. Entrepreneurial-minded leadership is the main force needed to successfully make changes. High organizational commitment is needed in an organization because the creation of high commitment will affect the professional work climate and comfort at work. Commitment itself can be done voluntarily or without coercion, many people commit to something because they love what they do. they do. According to (Luthans, 2012), organizational commitment is: (1) a strong desire to become a member of a group, (2) a high willingness to work for the organization, (3) a certain belief and acceptance of the values and goals organization".
According to (Sudarmanto, 2009) competence describes the basic knowledge and performance standards required to complete a job or hold a position. Competence is a basic characteristic of people and indicates ways of behaving and thinking, adapting to situations, and supporting for long periods. So competence is a combination of the characteristics of experts who have contributed to improving performance in achieving organizational goals that have been set.
Competency, Entrepreneurial Leadership, Commitment and,… 70
Meanwhile, according to Aminudin, (2019) Realizing Village Governance requires interaction between the government and the community. By indicating the transformation of the type of relationship in which the government is run to meet the needs of the citizens, this all requires a village head who has good competence.
According to (Stimson et al., 2006), leadership is the capacity to create strong and stable mechanisms and alliances to develop all things in the area of both micro and macro scales.
According to Stimson et al. (2006), the important elements that must be owned by a leader are collaboration, trust, sharing of power, flexibility, and an entrepreneurial spirit. So, leadership in the development of rural areas is not a hierarchical relationship, but rather a collaborative relationship between institutional actors which includes the government, private, and community sectors. The collaboration is based on mutual trust and a willingness to work together. A leader must also have an entrepreneurial spirit, which means that he always wants change, and can innovate and think creatively so that he can develop competitive abilities in his area by utilizing existing resources.
When conducting a job in a private or government organization, of course, it requires a commitment where a good commitment can improve the quality of performance and good morale. (Lincoln, 1989 and Bashaw, 1994) Sopiah, 2013) suggests that "organizational commitment has three indicators: employee willingness, employee loyalty, and employee pride in the organization. Meanwhile, according to Allen & Mayer (2013) namely people trust and acceptance of the values and goals of the organization, thus making that person feel at home and want to stay in the organization.
The principle of good governance is a basic principle that must be applied in all countries in the world, including Indonesia (Nugraheni and Subaweh, 2008). Abdul-Qadir and Kwanbo (2012) say that corporate governance is related to the relationship between the various legitimate stakeholders of the company. The main objective of implementing the principles of good governance is that organizational performance is increasing and the rights and obligations of society can be fulfilled (Nubatonis et al., 2014).
Apriliana, (2014) argues that Village Governance aims to bring public administration closer to the community by participating in voicing opinions and reducing budget misappropriation, and ensuring that decisions and implementation processes are open and easily understood by the community. According to Koiman in Sedarmayanti 2014) Governance is a process of socio-political interaction between government and society in various fields related to the interests of society.
RESEARCH METHOD
The method used in this study is a survey method with descriptive and verification analysis methods with a quantitative approach. Testing the research instrument was carried out by using the validity test, reliability test, and data normality test, while data analysis used the correlation coefficient and the coefficient of determination. Hypothesis testing uses the t-test for partial tests and the F-test for simultaneous tests.
The population is a generalization area consisting of objects/subjects that have certain qualities and characteristics determined by researchers to be studied and then draw conclusions (Sugiyono, 2014). The population in this study were all villages in the Cayumajakuning area, totaling 1,420 villages, while the population units were all village heads in the Ciayumajakuning area, totaling 1,420 village heads. As for the sample in this study, the authors used the Proportionate Stratified Random Sampling technique, this technique was used because the
Fauzi, et., al. 71
population was not homogeneous, referring to the opinion of Sugiyono (2011: 82) that,
"Proportionate Stratified Random Sampling is used when the population has members or elements that are not homogeneous and stratified proportionally". The strata referred to in this study are villages that fall into the category of Developing Villages, Advanced Villages, and Independent Villages.
The total number of sample members is determined through the Taro Yaname and Slovin formulas, this refers to the opinion of Riduwan and Engkos (2011: 49) that "the sampling technique uses the formulas from Taro Yaname and Slovin when the population is known". The formula is as follows:
𝑛 = 𝑁
𝑁 ∗ 𝑑!+ 1 Information:
n = Samples N = Population d2 =Presition
The precision set at 5 percent resulted in 312 village heads.
RESULTS AND DISCUSSION
For the results of this study to be representative, it is necessary to analyze the validity. A validity test is a measure that shows the level of validity of an instrument in research.
Table 4 Reliability Test
Variables r Count Cut Value Information
Competency 0,964 0,7 Reliables
Entrepreneurial Leadership 0,963 0,7 Reliables
Commitment 0,930 0,7 Reliables
Villages Governances 0.954 0,7 Reliables
Performance 0,925 0,7 Reliables
Source Table 4 Data Processed by Researchers (2022)
Based on the reliability test results above, the reliability value for the reliability coefficient value of the research instrument is greater than 0.700, which means that all research variables are declared reliable or meet the requirements. Because the validity test and reliability test state that all variables are valid and reliable, it means that the instrument (questionnaire) used is valid and reliable.
Normality Test
Normality test aims - for each variable normally distributed or not. The normality test is needed to carry out tests of other variables by assuming that the residual values follow a normal distribution. If this assumption is violated, the statistical test becomes invalid and parametric statistics cannot be used. "Test for normality”.
Table 5 Normality Test
Competency Leadership Commitment Villages
Governance Performance
N 312 312 312 312 312
Normal
Parametersa,b Mean 66.8269 46.1859 56.6314 50.4808 71.3686
Std.
Deviation 16.33006 10.34132 13.34463 12.92022 15.51999
Competency, Entrepreneurial Leadership, Commitment and,… 72 Most
Extreme Differences
Absolute .191 .185 .172 .233 .147
Positive .079 .098 .065 .163 .115
Negative -.191 -.185 -.172 -.233 -.147
Test Statistic 1.191 1.185 1.172 1.233 1.147
Asymp. Sig. (2-tailed) .080c .110c .070c .171c .065c
a. Test distribution is Normal.
b. Calculated from data.
c. Lilliefors Significance Correction.
Source Table 5 Data Processed by Researchers (2022) SEM
Creating a Theoretical Based Model
Figure 2 Model Modification Results According to Amos's
Based on the results of the model estimation in Figure, the results show that after modifying the model. The CMIN/DF decreased, and the CMIN/DF value obtained was 1.941 which was below 2.000, which means that after the model modification, the goodness of fit is fulfilled so that this modified model will then be used to test the validity and reliability of the construct.
Goodness of Fit Criteria’s
Assessing the goodness of fit is the main goal in SEM to find out how far the hypothesized model "fits" or matches the sample data. The goodness of fit results are shown in the following data
Table 6 Results of Research Structural Model Analysis (After Modification Process)
GOF Criteria’s Estimate Result’s
Statistik Chi-Square (X2) 780,238 Not Fit
P-Value 0,000 Not Fit
CMIN/df (df= 414) 1,941 Good Fit
Goodness-of-fit Index (GFI) 0,862 Marginal Fit
Root ,ean square error of approximation (RMSEA) 0,055 Good Fit
Expected cross-validation index (ECVI) 3,113 Good Fit
Fauzi, et., al. 73 Tucker-Lewis Index (TLI) atau non-normed Fit Index
(NNFI) 0,936 Good Fit
Normed Fit Index (NFI) 0,893 Good Fit
Adjusted Goodness of Fit Index (AGFI) 0,829 Marginal Fit
Incremental Fit Index (IFI) 0,945 Good Fit
Comparative Fit Index (CFI) 0,945 Good Fit
Parsimonius Goodness of Fit (PGFI) 0,698 Marginal Fit
Parsimonius Normed Fit Index (PNFI) 0,772 Marginal Fit
Source Table 6 Data Processed by Researchers (2022)
The result of calculating the Chi-square value (X2) for the model studied is 780.238 with a p-value is 0.000 lower than 0.05. The Chi-square value (X2) will be compared with the Chi-table value (x2table) at a significance level of 5% with df is 309 to obtain a Chi-table value of 350.995.
It is known that the Chi-square value > Chi-table (780.238 is bigger than 350.995) indicates that the model is not fit. This means that if the goodness of fit model is assessed from the chi-square value, then the model obtained is not good, however, because the reference goodness of fit model through the chi-square value can only be used in small samples is lower than 200 and the number of samples in this study is quite large namely 312, then the goodness of fit reference using the chi-square value cannot be used in this model. It cannot be concluded that the model is a good fit or not fit. The goodness of fit model for the number of samples is bigger than 200 can be seen from the CMINDF value. If the CMINDF value is lower than 2,000 then even though the chi-square value of the model is not fit, the model is still considered fit because the CMINDF value meets the required criteria.
Hypothesis Test
This study proposes 5 formulations of the problem, i.e.: (1) Is there an influence of Competence, Entrepreneurial Leadership, and Commitment to Governance, (2) Is there an influence of Competence on Governance, (3) Is there an influence of Entrepreneurial Leadership on Governance management, (4) Is there an effect of Commitment to Governance, (5) Is there an effect of Village Governance on Village Head Performance.
Simultaneous Test
The Influence of Village Head Competence, Entrepreneurial Leadership and Village Head Commitment to Governance, The results of data processing also show that the R2 value for the equation above is 0.755. This means that village governance can be explained by competency variables, entrepreneurial-minded leadership, and commitment of 75.5 percent. This value also indicates that other factors influence village governance beyond competency, entrepreneurial- minded leadership, and commitment of 0.245 or 24.5 percent.
Table 7 Partial Test (Uji t)
Estimate S.E. C.R. P Label
Villages
Governance ç Competency 0.148 0.023 6.514 *** par_27
Villages
Governance ç Commitment 0.196 0.022 8.994 *** par_28
Villages
Governance ç Entrepreneurial
Leadership 0.177 0.032 5.509 *** par_30
Competency, Entrepreneurial Leadership, Commitment and,… 74 Performance ç Villages
Governance 0.958 0.105 9.110 *** par_29
Source Table 7 Data Processed by Researchers (2022)
Partial testing is done by looking at the C.R value and p-value of each independent variable (latent exogenous) on the dependent variable (endogenous latent). Based on the table above, partial testing can be explained as follows: 1) Competence partially has a significant influence on village governance. This can be seen in the CR value of 6.514 greater than 1.65 and the p-value of 0.000 is lower than 0.05, then H0 is rejected and H1 is accepted, 2) Partially entrepreneurial-minded leadership has a significant influence on village governance. This can be seen in the CR value of 5.509 greater than 1.65 and the p-value of 0.000 is lower than 0.05, then H0 is rejected and H1 is accepted, 3) Commitment partially has a significant influence on village governance. This can be seen in the CR value of 8,994 which is greater than 1.65 and the p-value of 0.000 is lower than 0.05, so H0 is rejected and H1 is accepted and 4) Village governance partially has a significant influence on the performance of the village head. This can be seen in the CR value of 9.110 greater than 1.65 and the p-value of 0.000 is lower than 0.05, then H0 is rejected and H1 is accepted.
Table 8 Hypothesis Test
Variables Direct Indirect
Indirect Influence Total Competency Entrepreneurial
Leadership Commitment Commitment
(X1) 10,7% - 5,3% 5,4% 10,7 % 21,4%
Entrepreneurial Leadership
(X2) 9,6% 5,3% - 7,1% 12,4 % 22,0%
Commitment
(X3) 19,6% 5,4% 7,1% - 12,5 % 32,1%
Total Effect 75,5 %
Source Table 8 Data Processed by Researchers (2022)
The influence of Village Head Competence on Governance
The direct influence of competence (X1) on Village governance (Y) is 10.7 percent, while if it is mediated by entrepreneurial-minded leadership (X2), the indirect effect on governance is equal to 5.3 percent, whereas if it is mediated by commitment, the effect of competence on governance is 5.4 percent, so the total indirect effect is 10.7 percent so the total effect is 21.4 percent.
The influence of entrepreneurial leadership on governance
The direct influence of entrepreneurial leadership (X2) on village governance (Y) is 9.6 percent, while if it is mediated by competence (X1), the indirect effect on governance Village is equal to 5.3 percent, whereas if it is mediated by commitment, the influence of entrepreneurial- minded leadership on village governance is 7.1 percent, so the total indirect influence is 12.4 percent so that the total influence is 22.0 percent.
The influence of the village head's commitment to governance
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The direct influence of commitment (X3) on village governance (Y) 19.6 percent, while if it is mediated by competence (X1), the indirect effect on village governance is equal to 5.4percent, whereas if mediated by entrepreneurial insightful leadership (X2), the effect of commitment to governance is 7.1 percent, so the total indirect effect is 12.5 percent so the total effect is 32.1 percent. This means that the direct influence of commitment to governance is higher than the indirect influence on management mediated by competence and leadership. This means that high commitment from the village head will directly improve village government governance without the need to be mediated by competency and leadership of the village head.
The influence of village governance on village head performance
Structural model 2 describes the relationship between village governance on village head performance, which is stated in the hypothesis that village governance affects village head performance.
Performance = 0,940 (ρZY) + 116 (e2), Ry = 0,884
Based on the equation above, it can be explained that the performance variable is positively influenced by the village governance variable with a path coefficient of 0.940. This means that if governance improves, the performance of village heads in the ciayumajakuning area will increase by the path coefficient of 0.940 or every increase in village governance by 1 unit will provide a degree of contribution to improving performance by 0.940 units.
The results of data processing also show that the R2 value for the equation above is 0.884.
This illustrates that the performance of village heads in the ciayumajakuning area is influenced by village governance by 88.4 percent. This value also indicates that other factors affect the performance of the village head beside the governance factor of 0.116 or 11.6 percent.
CONCLUSIONS
The research analysis and discussion aim to answer the problems that have been formulated based on that, so some conclusions can be drawn as follows: An overview of competency conditions, entrepreneurial-minded leadership, and commitment of village heads in the Ciayumajakuning region, namely: Competence on average is included in the good category but there is still a deviation towards achieving the ideal. Meanwhile, the lowest dimension in the competency variable is the Cognitive dimension, especially in the aspect of being able to think analytically. There is another aspect that has the lowest average value in the Cognitive dimension, namely having technical/professional expertise.
Entrepreneurial leadership on average is included in the good category but there are still variations toward achieving the ideal. The lowest dimension in the entrepreneurial leadership variable is the dimension of responsiveness to resources with the lowest aspect being in the aspect that can distribute existing human resources.
Commitment on average is included in the good category but there are still deviations toward achieving the ideal. The lowest dimension in the Commitment variable is the Satisfied dimension when I can work in the organization until it is finished, with the lowest aspect being the aspect of the continuity of the organization which is determined by my attitude as the head of the village. When viewed in terms of village governance, on average it is in a good category, but there are still deviations toward achieving the ideal. The lowest dimension in the Village
Competency, Entrepreneurial Leadership, Commitment and,… 76
governance variable is the dimension of Upholding the Supremacy of Law with the lowest aspect being the aspect I always uphold the law firm and disciplined in all matters.
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